High gas prices run tempers hot

Posted: Saturday, February 03, 2001

By Walter C. JonesMorris News Service

ATLANTA -- Frustration about natural gas prices drove 75 protesters into the street Friday in front of the offices of Atlanta Gas Light Co. as they called on the attorney general to investigate their allegations of price gouging.

Related story: Spiking natural gas bills bring action

Organizers said other demonstrations are planned and threatened to organize a mass withholding of payments if their requests aren't met.

''We have been made aware that they have overcharged,'' said Michael Langford, president of one of the organizing groups, United Youth-Adult Conference II.

''Based on a decline of consumer trust in the gas providers, we are also renewing our call to Attorney General Thurbert Baker to launch an investigation into the overall practices of these companies regarding price gouging and lack of quality customer service.''

Langford said his group had done no research on the companies, the wholesale prices they pay, the profits they earn or what companies in other states charge. As unregulated companies, the marketers' prices aren't subject to review by state utilities regulators.

Figures released by the Georgia Public Service Commission show that the average rates charged in December by the state's 12 gas marketers are lower than those of neighboring states.

The same report shows the average unregulated charge is lower than the fee the state's remaining regulated gas marketer, United Cities, levies in the Columbus and Gainesville, where it operates.

Baker's staffers say they don't have the authority to investigate the protesters' claims. Georgia's only law related to excessive prices applies to building materials needed in the aftermath of a natural disaster.

''As far as these gas marketers are concerned, there is nothing we can do about it,'' said Baker spokesman Jeff DiSantis. ''There is no general crime or civil issue called 'price gouging.' ''

Several bills have been introduced in the General Assembly seeking to reimpose varying levels of regulation on the industry, including one by Sen. Regina Thomas, D-Savannah, that would restore full regulation. But House leaders don't expect them to be enacted.

During Friday's demonstration, gas customers were hot over the charges they have been paying.

Singing spirituals, chanting and waving signs with messages like ''Consumers Deserve Better'' and ''We Want Lower Gas Bills,'' the members of four community organizations walked the sidewalk and spilled into the street in front of the parent company of the largest gas marketer in the state, Georgia Natural Gas.

Customer Christine Peek of Atlanta said her gas charges soared from typically $100 per month in the winter to $400 this month.

''I have to do without, lower my food bill,'' she said. ''It has caused me to do without prescription drugs. Something's got to give.''

Prices have fluctuated widely in recent days. Last week, Georgia Natural Gas announced it was hiking its prices 15 percent. Thursday, it announced a 20-percent decrease, both in response to changing wholesale prices.

The company also admitted it incorrectly charged 140,000 customers in the confusion over price changes. It will apply credits on their accounts showing up in next month's statements.

The protesters say they'll continue their demonstrations in front of the offices of each of the marketers in the state. And they say they are planning to organize a one-day switch to the marketer they determine to offer the lowest prices.

If they aren't satisfied that marketers have improved customer service -- including adding toll-free telephone representatives and publicizing flexible payment options -- then they will call for a payment strike.

Like rent strikes used in large cities in previous decades, the payment strike would encourage disgruntled customers to withhold payments until the companies comply.

''Be sensitive to your customers and not just sensitive to your stockholders,'' said John Bascom, spokesman for the demonstrators.